Swiss Canton Zug to Accept Taxes in Bitcoin, Ethereum

Swiss Canton of Zug, also known as the Crypto Valley, has decided to accept Bitcoin and Ethereum as taxation Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term from February 2021.

This will be applicable for both private individuals and companies as they will be able to tax up to CHF 100,000 (around $109,000). However, partial payments in crypto will not be accepted.

Zug is home to many crypto and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term startups due to the friendly regulations in the administrative jurisdiction.

Notably, Zug city, the capital of the Swiss canton has already accepted taxes in digital currencies since 2016, making the current program an extension.

“As the home of the Crypto Valley, it is important to us to further promote and simplify the use of cryptocurrencies in everyday life,” Heinz Tännler, Finance Director at Zug administration, said. “By enabling the payment of taxes with Bitcoin or Ether, we are taking a big step in this direction.”

Volatility Cannot Stop Acceptance

Tännler also detailed that despite the administration’s decision to receive cryptocurrencies as a form of payment, it will receive the amount in fiat. This, according to him, will protect the tax office against the digital currency’s market volatility.

To implement this, the Zug Department of Finance is collaborating with local crypto financial services company, Bitcoin Suisse. The company will be responsible for converting the cryptocurrencies into Swiss francs.

The tax department also has plans to initiate a pilot in the coming weeks as Tännler asked everyone wishing to pay taxes in crypto to contact the Cantonal tax office.

“The combination of trading technology and payment transactions with crypto-currencies enables us to provide a good user experience for the taxpayer and to offer a proven service to the Canton of Zug,” Dr. Arthur Vayloyan, CEO of Bitcoin Suisse, added.